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Copyright: Toni Straka, 2005-2011 This blog is for information and entertainment purposes only. Under no circumstances does this information represent a recommendation to buy or sell securities or any other type of investment instruments.

Thursday, September 06, 2007

Attention silver investors. Silver is bought and sold some 10% above the global spot price in China, a Reuters dispatch informs, quoting Ellison Chu, senior manager at Standard Bank London in Hong Kong.

"There's a huge price difference between the domestic price in China and the international price. The demand is quite strong in China these days.The price in China is 10 percent higher than in the international market."

This news is insofar interesting as it raises the question whether the global spot price is valid anymore. Obviously not when such discrepancies occur.A similar gap between the spot price and prices actually paid occurred in late 2006 when silver bullion was bought at prices some 10% higher than spot prices would have indicated in Europe. This was because of a supply shortage as I was told by sellers who predict that the supply problem will only grow in the near future.According to the report demand for silver comes from all corners: Jewellery, photography, industrial and investment demand.Silver again outperformed gold on Thursday and is expected to go a lot higher in mining circles. Nobody wants to be quoted but the prices I hear for 2008 range between $20 and $30 based on growing demand and a continuing supply deficit.A list of silver companies can be found here.

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EXCERPT FROM THE US CONSTITUTION, Article I, section 10: No State shall ... coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts....

FROM THE US TREASURY WEBSITE: "Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. The notes have no value for themselves, but for what they will buy."

A LESSON FROM HISTORY BOOKS: The past 300 years have proven that ALL fiat money experiments ended in complete devaluation. From Rome to Britain: every empire vanished into oblivion soon after it went off the gold standard. It is time to recognize the obvious: Unbacked money has never worked.

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About Me

I am an INDEPENDENT Certified Financial Analyst who worked as a financial journalist for 15+ years and now evaluate global market trends. Analyzing financial and political news permanently I want to share my insight with those who understand that we are in an era of global redistribution of wealth. The US-European centric approach does not work anymore. 6 billion people in the developing countries now demand their fair share of the world's resources.
Having worked many years for a leading newswire I have learned to understand the fatal concept of ever expanding credit by heart. If you want to learn about the future of the economy, study history.